Media Luna Reaches Design Throughput, Shifting Morelos Risk to Optimisation

Torex Gold’s Media Luna mine reached design throughput rates during the first quarter of 2026, an important transition for the Morelos Complex after years of construction and plant integration. The operating risk has now shifted from whether the new underground mine can start to whether Torex can optimise a more complex gold-silver-copper system and sustain higher output.

Media Luna mined 7,578 tonnes per day in the first quarter, while the Morelos processing plant averaged 10,492 tonnes per day. The complex produced 100,874 gold-equivalent ounces and remained on track for full-year guidance of 420,000 to 470,000 ounces. Torex expects Media Luna to reach steady-state levels of about 7,500 tonnes per day by mid-year, meaning the early mining-rate target has effectively been reached.

Recoveries are the next operational lever

The quarter combined ore from Media Luna and ELG Underground. Reported recoveries were 84.6% for gold, 78.7% for silver and 90.3% for copper. Media Luna changes the metallurgy of the Morelos business because it introduces a larger copper component and requires production of a saleable concentrate alongside doré.

Mining tonnes at design rate does not guarantee equivalent financial performance. Concentrate grade, moisture, transport, treatment charges and payable-metal terms all affect revenue. Plant stability and recovery optimisation therefore become more important as Media Luna contributes a larger share of feed.

Torex has budgeted US$65 million to US$70 million for optimisation and other capital in 2026, in addition to US$100 million to US$105 million for Media Luna North. That spending indicates the ramp-up is entering a second phase: less about finishing the original project and more about improving reliability, mine flexibility and the next production areas.

Morelos is becoming a district rather than a single mine

The company plans about 113,500 metres of drilling across Morelos in 2026 at a cost of roughly US$43 million. The programme includes resource conversion, near-mine exploration and work on satellite targets. Torex’s second-quarter update highlighted continued drilling around Media Luna and other parts of the property.

This matters because the Morelos plant now has a long-term role beyond the original ELG open pits. Media Luna, ELG Underground and future satellite deposits must be sequenced as an integrated district. The value of exploration is therefore not merely additional ounces; it is the ability to keep the expanded processing infrastructure supplied with compatible ore.

Satellite deposits can improve flexibility, but they can also add complexity if they require separate development, haulage routes or metallurgical treatment. Investors should watch whether new zones can be connected to existing infrastructure at modest incremental capital.

Guidance delivery will validate the transition

Torex’s 2026 guidance includes 320,000 to 365,000 ounces of gold, 2.2 million to 2.5 million ounces of silver and 60 million to 65 million pounds of copper. The gold-equivalent figure depends on all three metals and on the pricing assumptions used to combine them.

Quarterly production should therefore be read alongside metal-specific recoveries, concentrate sales and costs. A stable mining rate with weak copper or precious-metal recovery would still leave value on the table. Conversely, improved recoveries can raise payable output without increasing underground tonnes.

Media Luna reaching design mining rates is a genuine de-risking milestone. The next phase is more demanding: Torex must prove that the entire Morelos system-from underground development through milling, flotation, concentrate logistics and exploration-can operate as a reliable, long-life production platform.